Getting your wires crossed

One of the compelling reasons to view charts before making a trade decision involves what I often call “x^ potential”. In coverting my shorthand here, this means “cross up potential”.

There are several potential cross moves that I look for, but for the purpose of this post I will focus on the MA (Moving Average) cross. Below is an example that I am monitoring today in UXG (US Gold Corp):

As you can see, the 20 day moving average is rising and looks to cross up through the 50 day moving average. This occurrence is quite bullish and increases the probability of success in trading this stock from the long side.

Sometimes it is quite all right to get your wires crossed.

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